Invest in SIP
Starting an SIP early provides you the benefits of compounding and helps you in achieving your financial goal
SIP - Systematic Investment Plan
Systematic Investment Plan (SIP) is a way of investing in mutual funds through which an investor can invest a fixed amount in mutual fund of his/her choice at regular intervals.
Like a Recurring Deposit, an investor can invest fixed amount at regular intervals (monthly or quarterly) through SIP. Rather than investing a large amount one-time through lump sum mode, more investors now prefer to invest smaller amounts regularly through the SIP mode. You can start investing through SIP in a mutual fund with an amount as low as Rs 100 per month.
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SIP Calculator: Systematic Investment Plan Calculator Online
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Investing in SIP made simpler with ICICI Direct
Step 1:Login to ICICI Direct
Step 2:Select Mutual Fund Scheme
Step 3:Set Up the Details
Step 4:OTP Verification
Step 5:Your SIP is Successful
Benefits of Investing in SIP
Promotes disciplined and consistent investing
Averages costs in volatile markets
Enables compounding for wealth growth
Minimizes risk of market timing
Provides flexibility to adjust investments
Investing is made simpler with ICICI Direct
Option to start SIP on any date between 1st to 28th of a month in schemes of select AMCs
Automatically increase your SIP amount on periodic basis
Flexibility to modify Trigger date, Frequency, Period & investment amount online with a few clicks
Investment can be done through linked ICICI Bank account, Mandate & UPI
Allows to take a break from your investment to meet financial exigencies
Set up a perpetual SIP and forget the hassle of tracking expiry dates
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How to Choose the Best SIP Plans to Invest?
Tiny droplets of water make up a mighty ocean. Similarly, one can create wealth by consistently making small investment decisions. Mutual funds are well-known to provide superior returns in the long run that can help in wealth creation. Not everyone has the financial bandwidth or prowess to invest large sums of money at once.
Know Everything About SIP or Systematic Investment Plan
SIP refers to a Systematic Investment Plan wherein the investor sets aside a particular amount for investing continuously at regular intervals.
SIP: What is Systematic Investment Plan, Benefits & How it works
Systematic Investment Plan (SIP) is one of the most convenient modes of investment. It enables you to begin your investment journey by allowing you to invest even with a small amount. Investing in mutual funds through SIP can help you achieve your goals and instil financial discipline.
Frequently Asked Questions
What is SIP?
A Systematic Investment Plan (SIP), more popularly known as SIP, is one of the most convenient modes of investment. SIP allows an investor to invest a fixed amount of money every month in the selected mutual fund scheme. You can start a SIP with an amount as low as Rs. 500 per month (Rs 100 per month in case of few schemes). By taking the SIP route to investments, the investor invests in a time-bound manner without worrying about the market dynamics and stands to benefit in the long-term due to average costing and power of compounding. SIP can help you achieve your goals and instil financial discipline.
How Does SIP work?
Once you apply for one or more SIP plans, the amount is automatically debited from your bank account and invested in the mutual funds you have purchased at the predetermined time interval.
At the end of the day, you will be allocated the units of mutual funds depending on the NAV of the mutual fund.
With every investment in an SIP plan in India, the additional units are added to your account depending on the market rate. With every investment, the amount being reinvested is larger and so is the return on those investments.
It is at the discretion of the investor to receive the returns at the end of the SIP’s tenure or at a periodic interval.
Let us understand with an example
Suppose you want to invest in a mutual fund and you have set aside a sum of 1 Lakh Rupees to invest in the same. Now there are two ways in which you can make this investment.
Either you can make a one time payment of Rs 1 Lakh in the mutual fund, also known as lump sum investment. Or you can choose to invest via Systematic Investment Plan or SIP.
You need to start an SIP of a set amount. Say Rs 500. Then Rs 500 will be deducted from your account and auto credited to the mutual fund you want to invest in, at a certain fixed date every month. This will continue till the time period.
What are the benefits of Investing through SIP?
- Easy on pockets – Investment through a SIP is possible with small amounts. You can start investing through a SIP with amount as low as Rs 500 per month or in case of certain schemes with Rs 100 per month.
- Disciplined approach in investing - SIPs inculcate saving habit & discipline in investments by making you invest on a regular basis.
- Do away with the need to time the market - By investing through a SIP, you do away with the worry of timing the market. Timing the market means looking at the right / lower level of market to start investing.
- Benefit from power of compounding over long term - With smaller amounts to invest through SIPs, you can start investing early. This gives the invested amount more time in the market which increases the probability of higher returns
What is the right time to start SIP?
There is no time like NOW to start investing. The earlier you start investing, the better it is. This gives the invested money more time in the market, thereby increasing the growth potential of your investments.
How much money do you need to Start a SIP?
You can start investing through a SIP with amount as low as Rs 500 per month or in case of certain schemes with Rs 100 per month.
* Funds that are allocated for trading do not leave the saving account of the customer, hence they are eligible for earning interest as per the savings bank rate.
** Thomson Reuters - Analyst Awards (Awarded to ICICI Direct research analysts) : 2011-12, 2014, 2015, 2017